Eagle Bancorp Montana (NASDAQ: EBMT) redeems $15M notes with 2-year bank credit line

Rhea-AI Filing Summary

Eagle Bancorp Montana, Inc. redeemed all of its outstanding 5.50% Fixed-to-Floating Rate Subordinated Notes due July 1, 2030, with an aggregate principal amount of $15,000,000, on October 1, 2025. The redemption price equaled 100% of the aggregate principal amount plus accrued and unpaid interest up to, but excluding, the redemption date, as provided in the original note terms.

To fund this redemption, the company drew $15,000,000 on an existing line of credit with a correspondent bank. This borrowing has a two-year maturity and bears a variable interest rate equal to 0.50% below the prime rate published in the Wall Street Journal, and is secured by the company’s assets and subject to financial and negative covenants.

Insights

Bank capital structure analyst

Eagle Bancorp Montana refinances $15M subordinated notes with a 2-year secured credit line.

Eagle Bancorp Montana, Inc. redeemed its 5.50% Fixed-to-Floating Rate Subordinated Notes due July 1, 2030, totaling $15,000,000, at par plus accrued interest. This removes the subordinated notes from its liability structure while maintaining similar nominal leverage by replacing them with a bank line of credit of the same principal amount.

The new borrowing is a two-year facility at a variable rate equal to 0.50% below the Wall Street Journal prime rate and is secured by company assets, with financial and negative covenants. Compared with the prior subordinated notes, this shifts the debt mix toward shorter-term, secured bank funding and introduces covenant considerations typical for such credit lines.

The overall impact depends on the future path of the prime rate and how the company manages the refinancing of this two-year borrowing as it approaches maturity. Subsequent company filings may provide more detail on interest expense trends and covenant headroom under this new structure.

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 1, 2025

Eagle Bancorp Montana, Inc.
(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation)	1-34682 (Commission File Number)	27-1449820 (IRS Employer Identification No.)
1400 Prospect Ave. Helena, MT 59601 (Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (406) 442-3080

Check the appropriate box if the Form 8-K filing is intended to simultaneously satisfy the reporting obligation of the registrant under any of the following provisions:

☐         Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐         Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐         Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐         Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	EBMT	Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.          ☐

Item 8.01         Other Events

On October 1, 2025 (the “Redemption Date”) Eagle Bancorp Montana, Inc. (the “Company”) redeemed all of the Company’s outstanding 5.50% Fixed-to-Floating Rate Subordinated Notes due July 1, 2030, having an aggregate principal amount of $15,000,000 (the “Subordinated Notes”), in accordance with the terms of the Subordinated Notes. The total redemption price was 100% of the aggregate principal amount of the Subordinated Notes, plus accrued and unpaid interest to, but excluding the Redemption Date. The Company utilized its existing line of credit with a correspondent bank to finance the redemption payment. The Company has drawn $15,000,000 on the line of credit, which has a two-year maturity and has a variable interest rate equal to 0.50% below the “prime rate” as published in the Wall Street Journal. The draw is secured by the assets of the Company and includes certain financial covenants and negative covenants.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	EAGLE BANCORP MONTANA, INC.
Date: October 2, 2025	By:	/s/ Miranda J. Spaulding
		Miranda J. Spaulding
		Senior Vice President & CFO

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FAQ

What debt did Eagle Bancorp Montana (EBMT) redeem on October 1, 2025?

On October 1, 2025, Eagle Bancorp Montana, Inc. redeemed all of its outstanding 5.50% Fixed-to-Floating Rate Subordinated Notes due July 1, 2030, with an aggregate principal amount of $15,000,000.

What redemption price did EBMT pay for the subordinated notes?

The company paid a total redemption price equal to 100% of the $15,000,000 aggregate principal amount of the subordinated notes, plus accrued and unpaid interest to, but excluding, the October 1, 2025 redemption date.

How did Eagle Bancorp Montana finance the $15 million note redemption?

Eagle Bancorp Montana financed the redemption by drawing $15,000,000 on its existing line of credit with a correspondent bank, matching the aggregate principal amount of the redeemed subordinated notes.

What are the key terms of EBMT’s new line of credit draw?

The draw on the line of credit has a two-year maturity and bears a variable interest rate equal to 0.50% below the prime rate published in the Wall Street Journal. It is secured by the company’s assets and includes financial and negative covenants.

Does the transaction change Eagle Bancorp Montana’s total principal debt amount?

Based on the disclosure, the company redeemed subordinated notes with an aggregate principal of $15,000,000 and drew $15,000,000 on its line of credit, indicating a refinancing of that principal amount rather than a change in nominal principal outstanding.

What type of event did EBMT report in this 8-K filing?

Eagle Bancorp Montana reported an Item 8.01 Other Event describing the full redemption of its 5.50% Fixed-to-Floating Rate Subordinated Notes due 2030 and the associated financing through a secured two-year line of credit.